They may even require that all compute happen locally. And of course that all content and so on meet local regulations. Sort of like what we see with other telecommunication, be it T-mobile or other. Sure, they operate in many countries, but they have local staff and follow local rules.
In that case it wouldn't matter how many intermediary entities are there between HQ and local operations.
And from what I understand Youtube isn't profitable by itself.
I don’t have specific estimates I can link to, but I’ve seen statements like this fairly regularly: There are more questions around YouTube’s profitability, but he said the general view was that it was “modestly profitable but not dramatically so.”
https://www.nytimes.com/2019/07/24/technology/youtube-financ...
Of course when Google actually disclosed what percentage of their revenue came from YouTube it was well below the 20% suggested in that piece.
What is 'that wildly profitable estimate' then?
And Chinese entrepreneurs just kind of said, "SWEET!", then swept in with their own startups offering those services.
I'd imagine there are a lot of Indians, even here in the US, that would make a headlong rush back to India to start up web service companies if our companies said we won't service India any longer.
Simple as that really. The government of Tuvalu making a similar request probably would have been politely ignored.